Workers' Comp Control Strategies
Your experience modification rate affects every bid you submit. We build the programs that move it in the right direction.
Workers' compensation costs are one of the largest controllable expenses in construction. Your experience modification rate (EMR) is recalculated every year based on your claims history, and a high EMR doesn't just raise your premiums. It disqualifies you from projects, triggers additional scrutiny from owners and GCs, and can make it impossible to win certain bids.
We work with contractors and industrial operators to identify the specific hazards and operational gaps driving their claims, implement targeted controls, and build the documentation that supports lower premiums at renewal. We also coordinate with your broker and carrier to make sure your safety program efforts are reflected in your rating.
Loss control isn't about paperwork. It's about changing how incidents happen, which means changing how hazards are identified, how near-misses are reported, and how quickly corrective actions are implemented. We help you build those systems.
What is an Experience Modification Rate and how does it affect my business?
Your Experience Modification Rate (EMR) is a multiplier calculated annually by the NCCI that adjusts your workers compensation premium based on your claims history relative to other contractors in your classification. An EMR of 1.0 is average. Many general contractors and project owners set a maximum EMR of 0.85 to 1.0 as a bid prequalification requirement. A high EMR can disqualify you from public work and increase insurance costs by 30 to 50 percent or more. Note: Texas is the only state that does not require private employers to carry workers'' compensation insurance. If your company is a non-subscriber, EMR does not apply to you, but non-subscribers face unrestricted common-law liability for workplace injuries — a different and often larger financial exposure.
How quickly can a safety program lower our EMR?
EMR is calculated on a three-year rolling average, so improvements take time to fully reflect. A serious incident this year will affect your EMR for three years. The fastest path is preventing recordable incidents from occurring in the first place. Contractors who implement systematic hazard recognition, near-miss reporting, and pre-task planning typically see measurable EMR improvement within two policy years.
What types of incidents hurt an EMR the most?
All OSHA recordable incidents affect your EMR, but incidents with lost workdays and incidents requiring medical treatment beyond first aid carry greater weight in the NCCI formula. Fatalities and catastrophic injuries have the largest single-incident impact. Near-misses and first-aid-only incidents, handled correctly and not recorded on the OSHA 300 log, do not affect your EMR.